Despite assertions to the contrary, Alberta’s oil sands are the proverbial golden goose for all levels of Canadian governments, which stand to gain almost a trillion Canadian dollars in the form of royalties, taxes and investment dollars by 2050..That’s according to the Canadian Energy Centre’s latest analysis, which estimates governments at all levels will generate US$420.7 billion in direct revenues along with another US$327.8 billion in capital expenditures based on an average long-term oil price of $60 per barrel. .The capex and government revenue numbers are expressed in nominal US dollars, assuming a 2.5% inflation rate and a 10% discount rate, it said in a statement..The capital numbers are equally important because it details the dollars required to keep production flat, without increasing it. Governments benefit from increased direct investment flows along with sales taxes for materials and income taxes from workers providing maintenance and any number of other services required to keep the oil flowing..The oil sands presently contribute more than 112,000 direct and indirect jobs across Canada alone, and are expected to generate well over $1.7 trillion to the Canadian economy as a whole, according to the Montreal-based Policy Options think tank..Chances are, those numbers — generated by independent analytics firm Rystad Energy — “uses a relatively conservative price trajectory for the analysis,” CEC said..The oil sands are the third-largest reserves in the world, after Venezuela and Saudi Arabia, with about 170 billion barrels of oil economically recoverable with existing technology and another 145 billion considered technically feasible.
Despite assertions to the contrary, Alberta’s oil sands are the proverbial golden goose for all levels of Canadian governments, which stand to gain almost a trillion Canadian dollars in the form of royalties, taxes and investment dollars by 2050..That’s according to the Canadian Energy Centre’s latest analysis, which estimates governments at all levels will generate US$420.7 billion in direct revenues along with another US$327.8 billion in capital expenditures based on an average long-term oil price of $60 per barrel. .The capex and government revenue numbers are expressed in nominal US dollars, assuming a 2.5% inflation rate and a 10% discount rate, it said in a statement..The capital numbers are equally important because it details the dollars required to keep production flat, without increasing it. Governments benefit from increased direct investment flows along with sales taxes for materials and income taxes from workers providing maintenance and any number of other services required to keep the oil flowing..The oil sands presently contribute more than 112,000 direct and indirect jobs across Canada alone, and are expected to generate well over $1.7 trillion to the Canadian economy as a whole, according to the Montreal-based Policy Options think tank..Chances are, those numbers — generated by independent analytics firm Rystad Energy — “uses a relatively conservative price trajectory for the analysis,” CEC said..The oil sands are the third-largest reserves in the world, after Venezuela and Saudi Arabia, with about 170 billion barrels of oil economically recoverable with existing technology and another 145 billion considered technically feasible.
